SILENCE ON CUBA EXPORT BILL IS TELLING: Florida GOP Reps.
Mario Diaz-Balart,
Carlos Curbelo and
Ileana Ros-Lehtinen have said next to nothing about a new version of a bill that would lift restrictions on financing for U.S. agricultural exports to Cuba, despite the fact it includes new provisions designed to allay their concerns about a potential thawing of relations between the two countries. Rep.
Rick Crawford (R-Ark.) announced the new proposal over the weekend and said it was the product of 10 months of negotiations with the Cuban-American lawmakers. But a spokeswoman for Diaz-Balart told MA “there is no deal” on his end, and didn’t respond to an inquiry for further information about Diaz-Balart’s stance. A spokeswoman for Ros-Lehtinen declined to comment on the measure and said the lawmaker is traveling in Jordan and Israel as part of a congressional delegation. Curbelo did not return a request for comment.

Crawford’s spokesman said the proposal is still a working text and that an agreement has not been reached on a final version of the bill, which would allow U.S. farm goods to be paid for on credit instead of cash up front (the only way sales are allowed now). It would also impose a 2-percent transaction fee on all agricultural sales to Cuba. Sellers would pay the fee, and the revenue would be directed to the thousands of U.S. companies and citizens that have certified claims of property confiscated by the Cuban government — worth $8 billion total. The claims date back decades, to when the Castro regime nationalized utilities and industries.

‘Cuba pays nothing’: John Kavulich, president of the U.S.-Cuba Trade and Economic Council, told MA that he hopes Crawford’s proposal “self-destructs.” U.S. entities that had nothing to do with the expropriation of property and businesses should not be making payments to compensate for the Cuban government’s actions, he said. “Cuba pays nothing, and it’s a transfer of money within the U.S. That’s just unacceptable,” he said. Instead, the U.S. and Cuban governments should craft a bilateral deal to resolve the issue, he argued. Kavulich also said he doesn’t think the U.S. agriculture industry will be on board because exporters would likely have to absorb the 2-percent transaction fee, which would mean they make less money in an already low-margin business. “Why would they want something that would make them less competitive?” he said. Kavulich takes aim at Crawford’s proposal
here.

Rice thinks it’s nice: The USA Rice Federation and U.S. Rice Producers Association back the new proposal, in part because they believe the market access would be worth it, and more organizations may reveal their support after a conference call today, Crawford’s office said Tuesday night. MA reached out to a host of other ag groups for perspective, but the outcome was the same: silence.

HAPPY WEDNESDAY, MAY 31! Welcome to Morning Ag, where your host needs ideas for what to eat, see and do in and around Great Falls, Mont. I’ll be there through Monday! You know the deal: Thoughts, news, tips? Send them to
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MINNESOTA, LAND OF A THOUSAND OPPORTUNITIES FOR YOUNG FARMERS? Minnesota Gov. Mark Dayton has said he will let a large tax package become law, meaning the state will soon provide tax credits for farmers who sell or rent land to beginning farmers — a policy development that an advocacy group believes could set a model for other states to follow. The measure is the most comprehensive state-level package aimed at raising a new crop of farmers and ranchers, said Andrew Bahrenburg, policy director for the National Young Farmers Coalition.

Access to land is consistently listed as one of the main barriers people face as they attempt to forge careers in farming. But with Minnesota set to incentivize land owners to rent or sell to new farmers, NYFC is hoping that acreage will become more readily available. Just 6 percent of farmers in Minnesota are 35 years-old or younger.

The tax incentives will likely play heavily next week when NYFC members are in Washington, D.C., for a fly-in. Three House Agriculture Committee members, including ranking member
Collin Peterson, and Sen.
Amy Klobuchar on Senate Ag, hail from Minnesota, and farmers are likely to tout the state’s new tax incentives to Hill lawmakers as they make the case for other states to help more young people get into farming.

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SNAPSHOT OF THE TRUMP BUDGET IN OHIO: Lisa Hamler-Fugitt, who leads the Ohio Association of Foodbanks, said she’s seen plenty of “draconian” budgets in her three decades of anti-hunger work, but President Donald Trump’s fiscal 2018 budget reached a new level.

“This is just catastrophic for the poor,” Hamler-Fugitt told MA on Tuesday. As far as she’s concerned the recession has not ended in Ohio and the number of people who are vulnerable seems to be increasing. “The demand just continues to increase month over month, year over year,” she said, adding: “A lot of that is the economy. Also, it’s an aging state.” The association, which represents 3,300 food pantries and food banks in the state, has seen a marked increase in hunger among seniors, she said.

Math problems: Under the president’s budget, Ohio could eventually be on the hook for up to 25 percent of the state’s SNAP benefits, but Hamler-Fugitt is quick to note the state faces an $800 million budget deficit. The state’s SNAP tab would be about $600 million on top of that if cost-sharing became the law of the land. “It’s not going to happen,” she said.

SENATE DEMOCRATS PILLORY TRUMP OVER RURAL DEVELOPMENT FUNDING: In the continued skirmishing over the White House budget, a group of 29 Democratic senators argued to Trump in a
letter on Tuesday that his proposal to slash funding for USDA Rural Development would undermine the department’s ability to provide support to small communities, such as through home ownership programs and access to clean drinking water and medical care. The senators, including several members of the Agriculture Committee, cited Trump’s proposal to zero-out funding for loans and grants that help finance rural water- and wastewater-infrastructure projects and a small business development program. These initiatives have been credited with saving almost 800,000 jobs and helping to finance more than 107,000 businesses since 2009, they wrote.

“These cuts, coupled with the recently announced USDA reorganization, deepens our concern that the decisions made by this administration will harm small towns and rural America,” the letter said, referring specifically to Agriculture Secretary Sonny Perdue’s decision to eliminate the undersecretary for rural development post and instead create an assistant to the secretary position to oversee that mission. Senate Ag Democrats who signed the letter include ranking member
Debbie Stabenow (Mich.),
Joe Donnelly (Ind.),
Sherrod Brown (Ohio),
Heidi Heitkamp (N.D.), Klobuchar,
Bob Casey (Pa.),
Michael Bennet (Colo.) and
Kirsten Gillibrand (N.Y.). Pros, catch up on that reorg
here.

ESCHMEYER JOINS DANONEWAVE: Debra Eschmeyer, who led food policy at the White House in the Obama administration’s last two years, has joined DanoneWave as vice president of communications. “As the world's largest public benefit corporation, DanoneWave is fortunate to have Deb’s knowledge, passion and leadership as we work towards a healthy planet and healthy people,” Lorna Davis, CEO of DanoneWave, said in a statement to MA when asked about the new hire.

Eschmeyer, known for being unrelenting but more diplomatic than her predecessor, Sam Kass, was previously co-founder and vice-president of external affairs for FoodCorps, and before that was a leader at the Farm-to-School Network.

DOLCINI LANDS AT POLLINATOR PARTNERSHIP: While we’re talking moves: Former USDA Farm Service Agency Administrator Val Dolcini has been named president of the Pollinator Partnership, which focuses on increasing habitat and protections for honey bee and other declining pollinator populations. Dolcini will take the reins of the organization on Thursday after two years leading FSA and stints as executive director of the California Farm Service Agency during the Clinton and Obama administrations.

FORMER HOEVEN STAFFER NOW AT IDFA: Tony Eberhard, former deputy chief of staff and legislative director for Sen.
John Hoeven (R-N.D.), has
joined the International Dairy Foods Association as vice president of legislative affairs. In his new role, Eberhard will be responsible for policy development and legislative strategy on Capitol Hill, working on issues like the upcoming farm bill, international trade and creating more flexibility in the types of milk schools can serve.

REYNOLDS TO FOLLOW BRANSTAD — TO CHINA: New
Iowa
Gov. Kim Reynolds announced on Tuesday she will lead a state agriculture trade mission to China on July 19-28, reuniting briefly with her predecessor, Terry Branstad, the Trump administration’s ambassador to China. Branstad, under whom Reynolds served as lieutenant governor until a week ago, cultivated a close relationship with Chinese President Xi Jinping over the years and used his connections to buoy the prospects of Iowa-based industry. “This is the first time all of Iowa’s farm groups have come together for a trade mission,” the
governor’s office said.

ZINKE CAUTIONED ON SAGE GROUSE PLANS: The governors of Wyoming and Colorado
have warned Interior Secretary Ryan Zinke about major changes he is considering to manage sage grouse populations in the West. Wyoming’s Matthew Mead, a Republican, and Colorado’s John Hickenlooper, a Democrat, said they are "concerned" that replacing the Obama administration's approach, which was based on protecting habitat, with one focused on hitting population targets "is not the right decision." In March, when Zinke
previewed some of his plans, he said he was confident states would be able to hit population targets.

The governors also cautioned against major changes to Bureau of Land Management land-use plans that were amended to address sage grouse. "Wholesale changes to the land-use plans are likely not necessary at this time," the governors, who co-chair the state-led Sage Grouse Task Force, wrote in a
letter obtained by Pro Energy’s Esther Whieldon. Mead and Hickenlooper urged Zinke to work with them before making any changes.

Zinke could issue a secretarial order on sage grouse management as early as this week, directing BLM to review existing plans to identify burdens they place on resource development, among other steps, said a source tracking the process. Interior spokeswoman Heather Swift said via text message that that was "not accurate" but declined to elaborate.

INTERIOR OFFICIAL KEPT AG STOCKS: Aurelia Skipwith, Zinke's hire for deputy assistant secretary for fish, wildlife and parks, has kept between $50,001 and $100,000 in stocks in the agricultural consulting firm she founded, AVC Global, according to a
public financial disclosure report obtained by Pro Energy. She also has between $1,001 and $15,000 in Monsanto shares.

DOL SETTLES WITH POULTRY COMPANY OVER UNPAID WAGES: The Labor Department reached a $600,000 settlement with a North Carolina company that rounds up live chickens for poultry processors and was accused of failing to properly compensate more than 800 employees, the agency
said Tuesday. DOL alleged that the company, Unicon Inc., automatically deducted money from employees’ paychecks for breaks they did not take. DOL also said the company neglected to pay its chicken catchers "for the time they spent on work activities prior to the start of the actual catching process" and failed to compensate drivers for time spent cleaning company vans. Further, DOL determined Unicon Inc. did not maintain payroll records — another federal labor law violation. Unicon Inc. declined to comment.

MA’S INSTANT OATS:

— Maryland has become the second U.S. state, behind California, to pass a law prohibiting the routine use of antibiotics in livestock and poultry, in an effort to combat the rise of drug-resistant bacteria, Reuters
reports.

— Donald Trump’s advisers have sent wildly different messages to U.S. allies about the president’s willingness to remain in the Paris climate agreement — adding to the confusion as he appears set to render a verdict this week. POLITICO has you
covered.

— Restaurants are suffering because going out for lunch is a “dying tradition,” The Wall Street Journal
reports.

— Celiacs, rejoice! When you see “gluten-free” on a food package it actually means the product is gluten-free, according to new findings the FDA released on Tuesday. Helena Bottemiller Evich has more
here.

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About The Author : Catherine Boudreau

Catherine Boudreau is a food and agriculture reporter for POLITICO Pro.

Before joining POLITICO, Catherine spent nearly two years writing about agriculture, food safety and international trade at Bloomberg BNA where she covered Congress, the Agriculture Department and Food and Drug Administration. Catherine’s work also has appeared in Bloomberg Businessweek.

Catherine is a native Vermonter and carries pure maple syrup to her favorite brunch spots in D.C., her current home. When not working, she likes to plan trips to places she’s never been and see live music. She really wants to start playing piano again.